Question 11:

When a call option is exercised, the:

A) holder of the option pays the option premium and receives the underlying asset.

B) writer of the option receives the strike price.

C) writer of the option sells the underlying stock and receives the strike price.

D) writer of the option receives the option premium.

E) holder of the option sells the underlying stock and receives the strike price.

Question 23:

Options expire on the _____ of the expiration month.

A) last Friday of the month at close of business day

B) last trading day

C) 3^rd Friday of the month at close of business day

D) Saturday following the 3^rd Friday of the month

E) Sunday following the last Saturday of the month

Question 24:

An American call option gives the holder the right to:

A) purchase the underlying stock at the exercise price only on the expiration date.

B) sell the underlying stock at the strike price any time prior or on the expiration date.

C) purchase the underlying stock at a strike price at any time on or before the expiration date.

D) sell the underlying stock at the strike price only on the expiration date.

E) purchase the underlying stock at the market price on or before the expiration date.